The Procurement Act 2023, which came into force on 24 February 2025, introduces significant reforms aimed at enhancing efficiency, transparency, and fairness in public sector procurement.
A key feature of the new legislation is the introduction of mandatory exclusion for suppliers involved in cartel activity, along with the establishment of a central debarment register.
These changes are crucial for suppliers bidding for public contracts and contracting authorities overseeing procurement processes in England, Wales, and Northern Ireland.
Key Changes Under the Procurement Act 2023
- Exclusion for Cartel Activity
Suppliers engaged in bid-rigging, price fixing, or market sharing now face mandatory exclusion from public procurement. If a supplier is found guilty of such practices, it cannot participate in procurement exercises or be awarded public contracts unless it can prove it has implemented corrective measures, known as ‘self-cleaning’. - Introduction of the Central Debarment Register
- The Minister of the Crown has the authority to place suppliers on a debarment list.
- Debarred suppliers are banned from bidding for public contracts for up to five years.
- Contracting authorities must check this register before awarding contracts.
- Extension of Exclusion to Connected Entities
- Suppliers can also be excluded if the misconduct relates to a connected or associated person, such as directors, parent or subsidiary companies, or key sub-contractors.
How Suppliers Can Avoid Exclusion or Debarment
To remain eligible for public procurement, suppliers must ensure full compliance with competition law. However, if a supplier realizes it has engaged in anti-competitive behavior, the following steps can help mitigate the consequences:
1. Leniency Application
- The first supplier to voluntarily report cartel activity to the Competition and Markets Authority (CMA) may receive a 100% reduction in fines and avoid exclusion or debarment.
- This provides a strong incentive for self-reporting under the CMA’s leniency policy.
2. Self-Cleaning Measures
- Suppliers can demonstrate reform by implementing internal compliance programs and corporate governance changes.
- If a supplier has admitted wrongdoing and agreed to pay penalties under the CMA’s settlement procedure, this may also prevent exclusion.
Guidance for Contracting Authorities
Contracting authorities must assess suppliers’ compliance history and determine whether they should be excluded. The following resources will assist in this assessment:
- Central Debarment List: Available through the Procurement Review Unit, listing suppliers barred from public procurement.
- CMA Decisions Register: Contains past infringement decisions involving suppliers.
- UK Competition Network Case List: Provides information on ongoing investigations.
